What acquisition of PredictionIO means for Salesforce.com, Inc. (NYSE:CRM)
Salesforce.com, Inc. (NYSE:CRM) has acquired machine learning startup PredictionIO for an undisclosed amount. PredictionIO becomes Salesforce’s first acquisition in 2016 and might mark the beginning of another series of acquisitions for this year. The company made a number of acquisitions last year, concluding with the purchase of SteelBrick for $360 million. Salesforce will add PredictionIO to its SalesforceIQ division.
PredictionIO is a provider of open source software. Developers can tap into its technology to enable them build predictive and analytic apps. PredictionIO is a popular platform among data scientists who use to evaluate models and create sample apps. The acquisition of PredictionIO is expected to help Salesforce.com, Inc. (NYSE:CRM) boost the intelligence across its clouds. In particular, Salesforce data analytics unit SalesforceIQ is expected to get better with the addition of PredictionIO.
Investment in data analytics
As Salesforce becomes more industry focused and expands into the Internet of Things (IoT) segment, the company has been doubling down its efforts in data analytics. Towards that end, PredictionIO is part of a series of acquisitions by Salesforce that include Tempo AI, RelateIQ and MinHash in the recent years.
Salesforce.com, Inc. (NYSE:CRM) is seeking to build a robust platform capable of collecting, analyzing and providing predictive solutions based on massive amounts of data. Among the others data analytic-themed offerings include Wave and IoT Cloud.
PredictionIO announced its acquisition by Salesforce through a blog post. The startup was founded in 2014. The startup had raised $2.65 million by the time of its acquisition.
Open source offering to continue
The acquisition of PredictionIO will not alter the availability of its software. The startup has said that its machine learning platform will continue to be available in open source even after tying up with Salesforce.
Industry-focused tools and platforms
In the recent years, Salesforce.com, Inc. (NYSE:CRM) is increasingly focusing its attention in building software and platforms that provide solutions for specific industries. Initially, the company has identified healthcare and financial services sectors as industries to focus on.
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